SUMMARY:

This bill accomplishes the same objective as HB4 with more specific wording.

REQUIREMENTS:

• The bill limits eligible ad valorem taxes to real property and excludes business or commercial property.
• The credit cannot exceed the amount of ad valorem taxes paid.
• The credit cannot exceed the taxpayer’s income tax liability.
• The credit cannot apply to previous or subsequent years.
• The credit is null and void if the state reserve is less than $500 million.
• The law would go into effect for the tax year beginning 1/1/2010.

NOTE:

• Once again, local school systems would be greatly hampered in the ability to raise the local revenue necessary to run even a “quality basic education,” as long as state “austerity cuts” and/or “formula adjustments” are in effect.  It would also limit or cause reduction in additional programs funded at the local level.